10 Best Digital Payments Stocks To Buy Now

3. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 87

PayPal Holdings, Inc. (NASDAQ:PYPL) enables digital payments on behalf of merchants and consumers globally. The firm was founded as the world’s first digital payment platform and has been revolutionizing commerce globally for over 25 years. It combines its best-in-class payments platform with value-added services to drive profitability.

PayPal is a trusted global brand with a two-sided network at scale which is exactly its unique competitive advantage. The firm holds an attractive industry position in a $6 trillion-plus global e-commerce market that benefits from the current digitization of payments and commerce. With continued engagement growth and debit card adoption, PayPal is benefitting from Venmo’s strong market position. To further expand its addressable market, the digital payments company is offering more value-added services for consumers and merchants while building omnichannel capabilities.

Apart from the hard-to-replicate advantage and the business strength, PayPal Holdings, Inc. (NASDAQ:PYPL) has strong financial results to offer. Highlights from the fiscal second quarter include net revenues increasing 8% to $7.9 billion, total payment volume increasing 11% to $416.8 billion, and payment transactions increasing 8% to 6.6 billion. With monthly active account growth across PayPal and Venmo, the firm drove customer momentum. Furthermore, it recorded its best transaction margin dollar growth since 2021.

Based on the strength and momentum being witnessed across PayPal, the firm is positioned well for durable and profitable long-term growth. As of Q2 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) was held by 87 hedge funds thereby ranking on our list. Citadel Investment Group was the top shareholder with a stake worth $469 million.